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7. It is contended that hospitals do not carry on any profession but are engaged in business activity.

Therefore, they would be outside the definition of Explanation (a) to Section 194J(3) of the Act. It is further submitted that only an individual can carry on a medical profession and a hospital cannot carry on profession. In this connection, our attention has been invited to the expression 'profession' as mentioned in Black's Law Dictionary 6th Edition. It is also argued that exercise of profession requires intellectual skill and ability and special qualification and hospital is simply a place for medical treatment, which by itself does not provide any professional services or does not carry on medical profession. It is also pointed out that from perusal of Sections 35AD(8)(C), 44AA and 80-IB, it is evident that hospitals carry on a business and not a profession. Our attention has also been invited to provisions of Indian Medical Council Act, 1956 in support of the proposition that only an individual is entitled to practice medicine and therefore, the hospital cannot practice medicine. The provisions of the Chartered Accountants Act, 1949 and Advocates Act, 1961 have also brought to our notice.

15. We agree with the submission made on behalf of the assessee that a hospital does not carry on profession of medicine as it is not a professional and does not wholly earn professional income. Learned counsel for the assessee is also correct in saying that profession can be carried on by an individual or groups of individuals because profession requires expertise and professional skills, as held, by Supreme Court in 'DR. DEVENDRA. M. SURTI V. STATE OF GUJARAT', AIR 1969 SC 63. However, incidental or ancillary services, which are connected with carrying on Medical Profession are included in the term Professional Services for the purpose of Section 194J. The words "in the course of carrying on" are used with the intention to include incidental, ancillary, adjunct or allied services connected with or relatable to medical services. Thus, the sweep and scope of Explanation (a) to Section 194J is not restricted only to payments made to medical or other professionals but services rendered in the course of carrying on the stipulated profession. It is pertinent to note that payments are made to the hospitals and not personally by the payer to the individual doctors or professionals. The medical services are rendered in the course of carrying on the medical profession. Undoubtedly, the nature of payment in the hands of the recipient, is determinative of deductibility of tax at source, however, the payments in the hands of hospital cannot be treated to be business income as the payments are received in the course of carrying on the medical profession. It is well settled rule of statutory interpretation that meaning and purport of one section cannot be understood with reference to other sections of the Act. Therefore, with reference to Section 35AD(8)(C), 44AA and 80-IB, it cannot be inferred that the hospitals carry on business and not profession. The submission of TPAs that when they make payments to the hospitals, they are not liable to deduct tax at source as hospitals carry on a business activity under Section 194J, is not worthy of acceptance.